Exclusive interview: Balancing act between energy security and decarbonization unlocking oil & gas resilience

As the world is taking steps away from oil and gas to diversify the energy mix with other low-carbon and green sources of supply, while also pursuing more of these resources, Sulzer, a Switzerland-headquartered sustainable flow control innovation player, has pointed out the operators’ need to pursue decarbonization tools to ensure cleaner production and more efficient operations, maximizing productivity and enhancing sustainability to tackle the climate change ticking time bomb and come to grips with energy security challenges.

While oil and gas operators work on cleaning up their act, they keep running into the growing backlash on both sides of the energy spectrum, where fossil fuels are being treated like the plaque on one side and embraced as the key to strengthen energy security on the other side, which also warns about the renewable energy’s current inability to fully replace oil and gas because of its intermittent nature.

During an interview with Murray Wilson, Regional Director (Nordics) at Sulzer, Offshore Energy went on a deep dive into the growing importance of Europe’s energy security and its increasing reliance on the Norwegian oil and gas sector, as it searches for the holy grain of greenhouse gas (GHG) emission cuts, where carbon capture and storage (CCS), alongside other decarbonization offerings in the energy transition toolbox, is seen as the right path to take on the road to strengthening the resilience of the hydrocarbon sector.

Sulzer, which is active in fluid engineering, providing solutions in pumping, mixing, separation, and application technologies for a wide range of industries, including water, oil, gas, chemicals, power, and many more, has also delved into the critical impact of maintenance to minimize downtime and ensure the uninterrupted operation of offshore assets.

• OE: The global offshore energy industry is rapidly evolving in response to the energy trilemma conundrum, aiming to tackle not just the double whammy of energy security and sustainability challenges but also the affordability of energy supply amid inflation and rising costs. The ongoing geopolitical tensions and intricacies take things to a whole new level, reshaping the supply and demand flows as new partnerships are forged, laying bare the need for more oil, gas, and LNG within the energy mix of our society. Many industry experts claim that this certainly serves to show the potential perils in advocating energy transition acceleration at the cost of security of supply and the need to keep both in mind while pursuing a new era of low-carbon and clean energy developments. What are your thoughts on this?

Murray Wilson: Energy security is paramount because, without it, our industries and society cannot continue to function efficiently. I believe that we need to ensure a broad portfolio of energy sources. However, it is clear that we need to generate our overall energy requirement in a more sustainable way. Transition to a lower fossil carbon energy mix is something that needs to be carefully phased.

For example, the UK needs to maximise its own resources in a way that allows it to flex its energy mix to smooth energy price fluctuations for its citizens. This means that although we continue to increase national investment in lower-carbon technologies, oil and gas produced from the UK Continental shelf – potentially with reduced emissions through CCU/CCS technologies – should continue to be an important part of our energy mix until we can achieve sufficient energy security and flexibility from alternate non-fossil sources.

• OE: Europe, primarily certain members of the European Union (EU), have been upping the net-zero ante by blazing new decarbonization trails on the road to a sustainable future. While European countries work on phasing down their oil and gas production to achieve net-zero goals, the reliability and efficiency of remaining active fields, especially in the North Sea, seem to be of crucial importance. What should a European energy security quest look like, and how much should oil and gas feature in such a mission?

Murray Wilson: Oil and gas will continue to be part of the European energy mix until our energy supply can safely and reliably be provided via non-fossil fuel sources. For example, electrification cannot realistically support the long-haul aviation industry at present, which is driving major investment in sustainable aviation fuel (SAF). However, the availability of suitable SAF feedstocks is limited, and this is driving the use of blended aviation fuels where SAF is mixed with conventional fuels to meet demand.

In this way, traditional oil and gas production is still a critical part of the energy mix, but the environmental impact is reduced. I believe the North Sea oil and gas industry needs to adopt a similar philosophy. This means recognising that it is currently impossible to completely eliminate its carbon footprint during production, but it can take steps to reduce this as far as practicable through combined energy grids, electrification, and a strong focus on equipment and process efficiency.

• OE: Would opening depleted North Sea fields for offshore gas storage be a viable option for European countries to boost their energy security?

Murray Wilson: Opening depleted North Sea fields for offshore gas storage is certainly one of the options that Europe could consider to enhance energy security; however, offshore storage is more expensive, and Europe would be reliant on the integrity and security of supply pipelines to shore.

Onshore storage may be more secure, but may be limited by geographical availability and proximity to population centres. European countries, therefore, will need to carefully balance the costs, logistical challenges, and capacity limitations of all available options when deciding the best approach to bolster energy security.

• OE: Norway is continuing to actively pursue further hydrocarbon exploration despite the mature level of its offshore acreage while also searching for ways to bolster its oil and gas production from existing assets with well intervention, digitalization, enhanced oil recovery (EOR) techniques, and many other technologies. Will the country continue to play a key role in supplying Europe, and what can other North Sea countries learn from the Norwegian energy sector?

Murray Wilson: Norway will continue to play a key role in supplying Europe, particularly with gas. Norway has consistently taken a long-term view of resource management, which has helped to maximise field life. The country has been a global leader in reducing energy consumption and emissions offshore through projects involving asset electrification, pump and compressor energy efficiency, and smart process control.

Norway’s importance to Europe has increased with the ongoing sanctions against Russian oil exports. As Europe has reduced its reliance on Russian energy sources, Norway has become the top exporter of natural gas to the region, boosting its production by about 8% to meet rising demand. Other North Sea countries can learn from Norway’s strong focus on long-term planning and reducing the carbon footprint of its production.

• OE: International energy experts are adamant that oil and gas will remain integral to the energy mix for the foreseeable future; thus, maintaining supply amidst production cessations and aging infrastructure presents a significant challenge, compounded by the need to perform efficiently in an unstable energy market where energy security is paramount. How can oil and gas players add value to a broader offshore energy focus on sustainability, safety, and energy security?

Murray Wilson: Optimising existing equipment to reduce emissions is important. For example, in most offshore oil and gas platforms, equipment has been designed for a specific duty point, but as production tapers in later years, the equipment is not operating at optimum efficiency. Retrofitting older equipment without modifying the existing equipment footprint has the potential to boost efficiency and lower energy consumption.

Enhanced equipment monitoring supports tailored maintenance strategies and optimises equipment uptime and maintenance costs. These approaches enable the industry to contribute to energy reduction without sacrificing energy security.

• OE: There is no arguing with the fact that operators stand to benefit on many fronts from reliability by taking advantage of enhanced redundancy, reduced energy costs, decreased production risk, and maintenance workload. What can be done to spruce up oil and gas reliability and overall image in the decarbonization age?

Murray Wilson: Reliability of industrial operations hinges on proactive maintenance. While some operators may cut costs by adjusting maintenance schedules, this can lead to unexpected breakdowns and higher expenses down the line.

A more effective approach is to leverage digital tools that enable predictive maintenance, allowing operators to identify potential issues before they become costly problems. By working closely with the supply chain and using data-driven insights, operators can optimise maintenance schedules, reduce energy consumption, and enhance reliability.

• OE: Some, like Saipem, and newcleo, are turning their attention to nuclear energy in a bid to lower emissions by contemplating ways to power offshore oil and gas operations with nuclear. Do you believe that this trend will grow in the future in the North Sea, Europe, and also around the world?

Murray Wilson: The possibility of using nuclear energy to power offshore oil and gas operations has been largely centred on providing power barges that platforms would hook up to and use as the primary energy source, rather than their installed gas turbines. I think this seems a practical solution, but it does present other potential challenges, such as nuclear security, that must be taken into consideration.

Another variable to consider is the life stage of the platform – nuclear energy is more likely to be applicable to early and mid-life platforms, where the cost of electrical infrastructure adaptations generates a net benefit.

• OE: Could you tell Offshore Energy’s readers more about the major equipment challenges offshore operators are facing both in the oil and gas arena and within the growing renewables landscape?  

Murray Wilson: As production profiles change, there is a need to review the performance and design of older rotating equipment to ensure it meets the latest operational requirements efficiently and its service life is maximised. Meeting these challenges can involve upgrading metallurgy, applying advanced coatings, or even re-engineering internal components to extend service intervals and improve overall efficiency.

The re-rating of assets can play a crucial role in aligning equipment performance with evolving production needs, reducing downtime, maintenance costs, and energy consumption. In the growing renewables sector, the challenges are somewhat different but equally significant.

Integrating cutting-edge technologies and ensuring materials and designs are robust enough to handle the harsh offshore environment are key. Equipment must be optimised for reliability, energy efficiency, and extended service intervals to ensure the success of these renewable projects.

• OE: What kind of impact do supply chain issues and long original equipment manufacturer (OEM)/spare parts lead times have on the energy industry, especially the offshore oil and gas segment?

Murray Wilson: Supply chain delays and long lead times for OEM parts have a significant impact on the energy industry. In recent years, many operators have reduced inventory levels to streamline costs, increasing production vulnerability and making them more dependent on OEMs and service providers. As a consequence, the focus is on faster parts production and shorter lead times for critical components.

This is where modern technologies, such as additive manufacturing or reclamation techniques such as laser metal deposition, can make a difference, enabling faster production of parts when they are urgently needed. However, for this to be more widely adopted, the technology must be scaled up and made more cost-effective. Reducing lead times is essential to keep operations running smoothly, as downtime in the offshore sector can lead to substantial financial losses.

• OE: How can the supply chain assist oil and gas operators in reducing their greenhouse gas emissions footprint, and what are some of the most popular clean technologies available today? Are there any such technological advances that you believe will become prominent in the future, even though they may not be as popular now?

Murray Wilson: The supply chain plays a critical role in helping oil and gas operators reduce their greenhouse gas emissions by delivering equipment that is more energy-efficient and that is designed for maximum reliability, leading to extended service intervals. Looking ahead, additive manufacturing has the potential to become even more prominent, as it can reduce waste and enable faster production of customised parts.

As these technologies evolve, they will play an increasingly important role in lowering the emissions footprint. Specialist abrasion-resistant coatings are already prevalent, particularly on high-energy applications, but could be more widely adopted. These do not significantly impact energy reduction in themselves, but by reducing internal wear, they extend equipment life. Therefore, the energy and emissions involved in more frequent interventions are avoided.

• OE: How can offshore energy operators come to grips with challenges in retaining and retraining talent, and workforce replacement to future-proof them for work in emerging energy markets while also helping to slash emissions from existing offshore operations?

Murray Wilson: Offshore energy operators can address talent retention and retraining challenges by focusing on cross-training their workforce, ensuring that they are equipped to handle both existing offshore operations and the needs of emerging energy markets. At Sulzer, we encourage our technicians to gain skills in both electrical and mechanical systems.

This prepares them to work not only on current oil and gas equipment but also supports their transition into servicing renewable energy equipment as the industry progresses. We are also supporting exposure to a variety of non-oil and gas equipment with secondments to other service facilities in our UK and Nordics network.

Multi-skilled trainings like these are crucial for future-proofing the workforce, ensuring that companies have the flexibility and expertise to reduce emissions while adapting to the evolving energy landscape.

• OE: Would some mild or even comprehensive overhauls of subsea and offshore oil and gas infrastructure be useful in curbing the GHG footprint and putting operators on track to meet net-zero by 2050 goals that most have set, especially in Europe?

Murray Wilson: Mild adaptations are likely to be more practical than comprehensive ones when it comes to curbing the GHG footprint and helping operators reduce their direct emissions. Completely replacing subsea infrastructure or significantly modifying existing platforms is incredibly complex and costly.

For this reason, equipment-centred improvements conducted during normal maintenance operations are more likely to reduce emissions without requiring a full-scale redesign. It is about striking a balance between investment and long-term operational efficiency, particularly as many assets near the end of their operational lifecycle.

• OE: How can oil and gas operators achieve the synergy between people, expertise, collaboration, energy efficiency, and innovation?

Murray Wilson: I believe closer long-term cooperation between operators and their maintenance partners is critical in the future. By fostering partnerships and sharing problems and expertise, operators can tap into the technical knowledge and innovation that service providers offer. For instance, sharing asset data on performance or operational problems allows supply chain technical specialists to help solve equipment problems alongside operators.

Optimising maintenance schedules or retrofitting equipment for greater energy efficiency can improve performance, extend service life, and reduce costs. The key is to establish a collaborative approach where all parties are equally invested in delivering better outcomes for operational efficiency.

• OE: Can we expect innovative technologies to usher in zero-emission oil and gas energy production, and if so, which technological tools do you believe will have a crucial role in revolutionizing oil and gas operations to such an extent?

Murray Wilson: Zero-emission oil and gas production is achievable, but it will require significant investment, likely limited to new assets due to the cost of modifying existing brownfield sites. Key drivers for reducing emissions include platform electrification, variable speed operation for maximum efficiency, and the integration of advanced control systems.

Carbon capture technologies will play a central role in addressing operational emissions, offering a direct pathway to decarbonizing production processes. When combined with energy-efficient designs, these technologies can dramatically lower the carbon footprint of operations.

Additionally, enhanced data capture and smart analysis tools are transforming maintenance strategies, enabling predictive rather than reactive approaches and reducing emissions caused by inefficiencies. While these innovations bring us closer to zero-emission production, achieving this vision will require careful planning and a long-term commitment to technological advancement.

• OE: Thank you for this interview! Are there any other aspects of the offshore oil and gas evolution in the context of the widespread energy security and decarbonization missions that you would like to put the spotlight on as a significant contributor to prolonging the fossil fuel industry’s life?

Murray Wilson: Thank you for the opportunity! To wrap up, I would like to emphasise that the transition to cleaner energy will be a gradual process, and oil and gas will remain a crucial part of the energy mix for years to come. In this context, focusing on greater efficiency, reducing emissions, and implementing smarter and predictive maintenance strategies will be essential to extending the life of industrial assets that currently provide the backbone of safe operational production.

Extending the life of existing offshore assets, while also preparing for the adoption of new energy technologies, will help ensure a smoother energy transition. Balancing the need for energy security with decarbonization efforts will be key to keeping the offshore oil and gas industry resilient during this ongoing evolution.

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